Manuscript Title:

THE EFFECT OF MONETARY VARIABLES ON ACHIEVING MONETARY POLICY GOALS IN THE ALGERIAN ECONOMY FOR THE PERIOD (2001- 2020)

Author:

KARA RABAH, OUNASSI HASSENE, KARA ALDJIA-SOUAD

DOI Number:

DOI:10.5281/zenodo.10017502

Published : 2023-10-10

About the author(s)

1. KARA RABAH - Lecturer, Laboratory of Development, Economy, Finance and Institutions (DEFI). University of Mouloud MAMMERI in Tizi-Ouzou, Algeria.
2. OUNASSI HASSENE - PhD Student, Department of Economics, Laboratory of Development, Economy, Finance and Institutions (DEFI), University of Mouloud MAMMERI in Tizi-Ouzou, Algeria.
3. KARA ALDJIA-SOUAD - PhD Student, Department of Economics, Laboratory of Development, Economy, Finance and Institutions (DEFI), University of Mouloud MAMMERI in Tizi-Ouzou, Algeria.

Full Text : PDF

Abstract

This study aims to examine the trajectory of monetary policy variables and financial liberalization in Algeria between 2005 and 2015. The findings of this study indicate that the financial liberalization indicators have a negative impact on monetary policy variables. This can be attributed to the slow pace of the liberalization process and the presence of financial restrictions in the Algerian economy, especially concerning exchange rate policy and capital movement controls. Additionally, the high liquidity in the economy has not had a positive influence on the objectives of monetary policy.


Keywords

Monetary Policy; Financial Liberalization; Principal Component Analysis.